Book Summary Preview : The 18 Immutable Laws of Corporate Reputation

The Big Idea
Everything an individual or company does or produces contributes to its reputation. Reputation is an intangible asset, but a very important one. In some ways it is even better than having money in the bank, but not as easily quantified.

A good reputation is its own advertising and quality seal. It can engender loyalty in customers that can cross several generations and time zones. A good reputation can bring in more customers in the good times, and be a protective buffer in the bad times.

The author has delineated what he calls the, “18 Immutable Laws of Corporate Reputation.” This book holistically deals with the topic of reputation management in three parts: establishing a good reputation, keeping that good reputation and repairing a damaged reputation

Part One: Establishing A Good Reputation

Law One: Maximize Your Most Powerful Asset

Reputation 101
In the course of an individual’s or company’s or organization’s life, each activity or action or product perceived by the public is counted for or against on the reputation scorecard. It takes a lifetime to build a good reputation and an instant to ruin it.

Reputation is an intangible asset yet it is arguably the most valuable asset to manage and maximize. A good reputation can attract and keep customers, investors, and employees. Because of this, a good reputation is like a reservoir of good will (towards the company) to help it weather bear markets, scandals, or natural crises. Conversely, a lost or damaged name can scar a company and provoke boycotts or drive off new capital.

Fostering a Reputation-Conscious Culture
Because factors affecting reputation are so pervasive, it is necessary to have a concerted company effort to nurture and guard it. Reputation management can be handled by single managers or by whole departments. Their goal is to indoctrinate employees and, in some cases, suppliers, on the company’s image, goals, philosophy etc.

The Payoffs From A Positive Reputation
Though reputation is an intangible asset some of its effects are not:

• A study of 216 companies related higher stock values for companies with reputations for strong social responsibility
• A study of 10 portfolios attributed higher prices to investor confidence that these were less risky.
• Customers will buy products known for good service and/or good quality (In the case of Microsoft, their reputation helped them compete in new markets like game consoles)
• Boosts employee morale and performance
• Attracts top talent (as managers, new graduates, etc.)

Law Two: Know Thyself – Measure Your Reputation

Keep score
Before you can manage your reputation you must first measure it and keep score. Measuring reputation is easily done through standard public opinion or market studies; but as each corporation has different stakeholders (target markets, shareholders, etc.) it is necessary to customize. Less than half of corporations have custom research programs. There are no clear methodologies so it is important to identify the stakeholders (from local to global) and the relevant attributes or quantities to be measured: the same company may rank differently in different surveys/studies. . . . . . . . .

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